It is almost breathtaking how impotent the Biden administration was — which, for better or worse, makes the jarring pace of the Trump administration even more noticeable. President Trump has already set us on a new course internationally, begun reshaping the government, and will soon target the domestic economy. It is crucial that he focuses on restoring the American dream of home ownership.
While largely indecisive in most areas, Joe Biden’s Department of Housing and Urban Development seemed especially bent on slowing down markets and raising prices for American consumers — including those who bought homes.
Trump’s appointments at HUD and the Justice Department can score early wins by restoring law and order to the housing market.
President Trump appears to be on a better path. Scott Turner, the former Texas state representative and new Housing and Urban Development secretary, sailed through confirmation last month. He has moved swiftly to reverse troubling Biden-era regulations, such as the 2021 Affirmatively Furthering Fair Housing rule, effectively a zoning tax that drove up housing costs.
Reversing Biden-era policies
Certainly, Turner’s HUD will pursue priorities that are different from those of the Biden administration. Biden’s housing agenda focused mainly on diversity and equity issues. One example was the department’s leadership of the Interagency Task Force on Property Appraisal and Valuation Equity.
Various government agencies, including the Department of Justice, the Consumer Financial Protection Bureau, and the Federal Deposit Insurance Corporation, participated in this sprawling task force, which sought to crack down on appraisal bias. Even before Turner’s confirmation, the Trump administration began scrubbing the task force from government websites as part of the president’s anti-DEI executive order.
For Turner to restore the American dream of home ownership, he must dismantle many of the task force’s initiatives and other Biden-era housing policies — a challenge he appears eager to take on.
Shortly after his confirmation on February 5, Turner told the Wall Street Journal that he would move quickly to root out inefficiencies in the department and streamline HUD. He also pledged to scrutinize diversity, equity, and inclusion policies, such as “appraisal bias.”
Rocket Mortgage revisited
A recent appraisal bias lawsuit filed by the Biden Justice Department against a host of defendants, including Rocket Mortgage — the nation’s largest mortgage lender — illustrates how Biden’s administration prioritized its DEI agenda over more affordable housing. The lawsuit would be a good place for Turner to start.
In 2021, HUD took over an investigation from Colorado authorities after a Rocket Mortgage customer alleged she was a victim of appraisal bias. In July 2024, HUD announced a lawsuit against Rocket Mortgage and third-party appraisers Solidifi US and Maverick Appraisal Group. In October, a little over two weeks before the presidential election, the Justice Department filed a lawsuit in Denver, alleging the companies discriminated against the black homeowner by undervaluing her home based on her race.
The lawsuit has caught the attention of former HUD officials and legal scholars because the Justice Department’s proposed remedies from Rocket Mortgage would set a dangerous precedent by holding mortgage lenders responsible for independent appraisers hired by mortgage applicants.
Appraisal independence is vital
The principle of appraisal independence, established in the Dodd-Frank Act, ensures that an appraiser’s independent judgment is free from the influence of other parties who might benefit. This safeguard eliminates the conflicts of interest that contributed to the pre-2008 housing bubble, when lenders obtained inflated appraisals to assume more risk and increase profits.
Fannie Mae maintains a fact sheet outlining appraisal independence for sellers and prospective borrowers, emphasizing that lenders are prohibited explicitly from ordering an appraisal, selecting or recommending a particular independent appraiser, or engaging in any communications that could affect the valuation.
Appraisal bias is a real problem but stems from a few bad apples, not a malfunctioning system. The Biden administration’s attempt to rewrite housing laws through the Justice Department and HUD risks disrupting the mortgage-lending industry and making home ownership even more unattainable by reversing protections to prevent another 2008-like housing bubble.
By dismantling the barrier between independent appraisers and lenders, the Biden Justice Department has brought uncertainty to the industry and threatens to destabilize the housing market.
Trump’s appointments at HUD and the Justice Department can score early wins by restoring law and order to the housing market. In doing so, they can help make the American dream of home ownership affordable again — simply by backing off the companies making housing affordable in the private market.
Housing, Affordable housing, Homeowner, Housing and urban development, Scott turner, Donald trump, Joe biden, Lawsuits, Rocket mortgage, Civil rights, Appraisal bias, Opinion & analysis
